From Border Congestion to Systemic Reform
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To address the persistent congestion of agricultural products at Vietnam’s northern border gates, Minister of Industry and Trade Nguyễn Hồng Diên emphasized the need for a strategic shift — from small-scale production and informal trade to formal, large-scale exports.
During the March 16 session of the National Assembly Standing Committee, Minister Diên answered questions regarding fuel supply issues, import–export logistics during the Covid-19 pandemic, and especially agricultural export bottlenecks.
Creating “Green Zones” for Safe Cross-Border Trade
Representative Trần Quốc Tuấn (Trà Vinh) highlighted the dual impact of the prolonged pandemic and the Russia–Ukraine conflict, both of which have pushed fuel prices higher, raising production costs and hurting farm-sector competitiveness.
He asked about immediate and long-term measures to ensure smooth agricultural exports.
Minister Diên responded that there were two main causes of the congestion:
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China’s Zero-Covid policy, which imposed strict border closures.
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Vietnam’s traditional reliance on informal (small-scale) trade routes, with products often lacking standardized production plans and quality specifications.
To mitigate the problem, the Ministry proposed and coordinated with China to establish safe “green zones” for goods clearance, harmonize customs procedures, and guide border provinces to support exporters and transporters. Domestic consumption was also boosted through e-commerce platforms and retail networks, while Vietnam’s trade offices abroad were instructed to strengthen market connections and diversify export destinations.
“Agricultural Production and Marketing Still in Circles”
Representative Siu Hương (Gia Lai) further pressed the Minister on the structural weaknesses of Vietnam’s agricultural value chain, noting the broken supply and distribution links exposed during the pandemic.
Minister Diên candidly acknowledged:
“Our agricultural production and consumption strategy remains circular and stagnant.
In a market economy, producers must answer three basic questions: What to produce? Where to sell? And to whom?
Yet many continue to produce whatever is available, and sell wherever possible — that is why we remain passive.”
He noted that the Ministry of Industry and Trade, together with the Ministry of Agriculture and Rural Development (MARD), has been training industry associations and agribusinesses on export standards, packaging, and consumer habits in key markets — part of a long-term transition from informal to formal export channels.
In the short term, however, the government and relevant ministries continue to hold intensive negotiations with Chinese counterparts to resolve bottlenecks caused by strict border control measures.
Rising Input Costs Threaten Farmers
Representative Nguyễn Thị Thu Nguyệt (Đắk Lắk) raised another pressing concern: sharp increases in agricultural input costs — including fertilizers, pesticides, and other farm supplies — some rising over 100% since the fourth Covid-19 wave, while output prices for crops have fallen.
She questioned the Ministry’s responsibility and proposed solutions for price stabilization in the agricultural input market.
Minister Diên noted that fertilizer and strategic commodity prices were rising globally, much like fuel prices.
“If we can stabilize fuel prices, we can stabilize production costs across sectors,” he said.
He added that the Ministry, along with other agencies, is studying and proposing tax and price-support policies to help producers and vulnerable groups weather this difficult period.
“No one wants these hardships,” he said. “But in challenging times, we must exert every effort we can. Together with the Ministry of Agriculture and other relevant bodies, we will continue to study, advise, and propose effective measures to ease the difficulties raised by the National Assembly representatives.”